Woori Bank (NYSE: WF) and First NBC Bank Holding (OTCMKTS:FNBC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Volatility and Risk
Woori Bank has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, First NBC Bank Holding has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500.
This table compares Woori Bank and First NBC Bank Holding’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First NBC Bank Holding||10.67%||3.71%||0.33%|
Woori Bank pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. First NBC Bank Holding does not pay a dividend. Woori Bank pays out 16.6% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations for Woori Bank and First NBC Bank Holding, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First NBC Bank Holding||0||3||0||0||2.00|
Woori Bank presently has a consensus target price of $7.00, suggesting a potential downside of 85.48%. First NBC Bank Holding has a consensus target price of $4.83, suggesting a potential upside of 3,705.77%. Given First NBC Bank Holding’s higher probable upside, analysts plainly believe First NBC Bank Holding is more favorable than Woori Bank.
Institutional & Insider Ownership
0.3% of Woori Bank shares are held by institutional investors. Comparatively, 73.9% of First NBC Bank Holding shares are held by institutional investors. 8.4% of First NBC Bank Holding shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Woori Bank and First NBC Bank Holding’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First NBC Bank Holding||N/A||N/A||N/A||$3.09||0.04|
First NBC Bank Holding is trading at a lower price-to-earnings ratio than Woori Bank, indicating that it is currently the more affordable of the two stocks.
Woori Bank beats First NBC Bank Holding on 7 of the 12 factors compared between the two stocks.
Woori Bank Company Profile
Woori Finance Holdings Co., Ltd. is a financial holding company. The Company serves over 24 million corporate and retail customers with a range of financial services, including commercial banking, credit card, capital market, international banking, wealth management and bancassurance services. The Company’s domestic network consists of more than 1,300 branches and 8,500 cash terminals. Its banking subsidiaries include Woori Bank, Kwangju Bank and Kyongnam Bank. Its non-banking subsidiaries include Woori Investment & Securities, Woori AVIVA Life Insurance, Woori CS Asset Management, Woori Financial, Woori Finance Information System, Woori F&I and Woori Private Equity.
First NBC Bank Holding Company Profile
First NBC Bank Holding Company is a bank holding company. The Company offers a range of financial services through its banking subsidiary, First NBC Bank. The Company operates through community banking segment. It offers financial services to businesses, institutions and individuals in southeastern Louisiana and the Florida panhandle. The Company’s primary focus is on commercial real estate and commercial lending. Its loans include construction loans, commercial real estate loans, consumer real estate loans, commercial and industrial loans, and consumer loans. Its securities portfolio consists primarily of the United States Government agency obligations, mortgage-backed securities, and municipal securities, although the Company also holds corporate bonds. The Company’s primary source of funding for its loans is deposits. Its deposits include noninterest-bearing demand, negotiable order of withdrawal (NOW) accounts, money market accounts, savings deposits and certificates of deposit.
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